Toronto Real Estate Prices Are Down $245k, City Fell Nearly 2x Faster Than Burbs

Greater Toronto real estate prices continue to fall, but City prices may have just taken a nosedive. Toronto Regional Real Estate Board (TRREB) data shows composite home prices fell in November 2022. The price of a typical home has dropped nearly a  quarter-million dollars since peaking earlier this year. With higher interest rates still to come, along with City prices falling at nearly double the rate of the region—this trend appears far from over. 

Toronto Real Estate Prices Fell At Nearly Double The Rate of The Greater Region

Greater Toronto real estate prices continue to spiral lower as higher rates knock the exuberance out of them. The price of a typical home across TRREB fell to $1,089,800 in November, down 0.8% (-$8,400) from a month before. Compared to last year, prices are now 5.5% (-$63,300) lower— yes, they’re lower year-over-year now. 

Greater Toronto Real Estate Prices Are Off The Peak

The composite benchmark price of a home across Greater Toronto.

Source: TRREB; Better Dwelling.

Real estate prices in the City of Toronto started to accelerate the decline last month. The price of a typical home fell to $1,074,300 in November, down 1.5% (-$15,900) from a month before. Nearly twice as large as the decline across Greater Toronto, as the floor gives out beneath City prices. Compared to last year, home prices are down 4.3% (-$47,700) — slightly less than the TRREB benchmark, but it would catch up fairly fast at this rate. 

Annual Growth For Toronto Home Prices Is The Lowest Since 2018

The rate of annual growth is something worth taking note of, being the lowest in a half-decade. The 5.5% contraction is the largest since June 2018, when interest rates peaked during the last cycle.  

Greater Toronto Real Estate Price Growth Is Decelerating

The 12-month percent change for the composite benchmark price of a home across Greater Toronto.

Source: TRREB; Better Dwelling.

Toronto Real Estate Prices Fell Over $245k From Peak

Greater Toronto real estate prices peaked in March, and have since plummeted. The price of a typical home across TRREB has dropped 18.4% (-$245,200) from the record high, and doesn’t look like it’s stopping anytime soon, with interest rates still climbing. 

This was an unbelievable amount of froth. Just the decline in price is the equivalent of the average selling price of a whole home in the early 2000s. Interest rates typically don’t work this fast, with economists attributing this to just the change in buyer psychology.

Interest rates are rising at an unusually fast rate, which is definitely having an impact on the market. However, central bank research shows an increase in interest rates isn’t fully realized in the market until 18 to 24 months after they’ve peaked. With interest rates still climbing, more credit throttling is expected, and the current collapse of buying demand is likely attributed to investors that flooded the market when rates were slashed in 2020

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  • Kate 1 month ago

    Well, according to local realtors it is rising market and still a wonderful investment.

    • Narendra Kohli 1 month ago

      True indeed , all they have to say is there are thousands of immigrants arriving . I am seeing for the very first time ever that immigrant families are returning back due to non affordability of paying the rent or mortgage and the higher living costs. The housing prices were already high and got over inflated during the pandemic by the comments of theese agents.

  • David ritchie 1 month ago

    If you bought at the top of the market you made a mistake. We all make mistakes. If you buy now, your just a fool. Any cheap property you see, will be a lot less in 6 months. Another 30% or more drop to go . The banks are helping the fall. 25% down on selling, is probably the minimum to get a loan. Max they will lend is probably about 80% of their appraisal, Their appraisal itself will be well below anyones asking price They will not lend much in a falling market.

  • BE McWilliam 1 month ago

    Toronto buyers have gone to the USA for the deals. Toronto housing markets are toast.

    CANADIAN REALTORS STILL AT A LOSS.
    INVESTORS HAVE EXITED CANADA FOR THE CHEAPER AMERICAN HOUSING MARKETS IN DROVES WITH ALL THE EARLY RETIREMENTS – NOBODY WANTS TO STAY AND PAY HIGH TAXES AND INTEREST CHARGES ON OVERPRICED HOMES IN CANADA. CANADA IS FINISHED FOR 20 YEARS.
    DUMP YOUR CANADIAN HOMES AND CONDOS AND BUY IN USA

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